Internet of Everything Market is Predicted to Surpass USD 7,000 billion by 2020

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June 08, 2018

Internet of Everything (IoE) is a systematic connection of data, things, processes and people. It
enables the convergence of previously unconnected physical and digital domains.
IoE is drastically changing the way business organizations function. It is
affecting not just technological areas of enterprises but also crucial business
strategies.

Market Growth Drivers

The worldwide Internet of Everything(IoE) market is expected to grow
substantially in the future. It is likely to observe a CAGR of more than 16%
during 2014 to 2020. The market would exceed USD 7,000 billion by 2020.

Accelerated internet penetration,
proliferation of connected devices and growing expenditure on technology across
the globe will be the crucial drivers of the worldwide Internet of Everything
(IoE) market. IoE is being adopted by various public and private institutions,
like educational establishments; non-governmental organizations; healthcare
bodies; federal & state governmental agencies, etc.

Faster networks, internet security equipments
and high speed processors are also estimated to propel the demand for the
Internet of Everything (IoE) Market. The emergence of big data analytics would
prove favorable for the market. Moreover, the rising demand for Information and
Communications Technology (ITC) products, particularly in Asia Pacific, is also
anticipated to escalate the sales of the Internet of Everything (IoE) market.

Internet security issues are likely to hamper
the future prospects of the Internet of Everything (IoE) market. Lack of
high-speed connectivity in many regions will pose a challenge for high-traffic
data transfer, thereby restricting further growth of the market.

The success of the Internet of Everything
(IoE) market depends on some factors. These are compatibility of hardware and
software; proper synchronization; improvements in wired and wireless
infrastructure; advancements in data mining; and analysis; etc.

Business Verticals - Insights

The Internet of Everything (IoE) market can be
divided into two business verticals - business to business (B2B) and consumer.

B2B can be further spit into retail;
manufacturing; transportation; banking; financial services & insurance;
utility; healthcare; public; and communication & media. Within the B2B
vertical, the highest demand for IoE services was generated by the
manufacturing sector.

Manufacturing captured a share of over 30% in
2013. Public followed manufacturing and was valued at 20% of the worldwide
Internet of Everything (IoE) market. Healthcare, with a CAGR of more than 20%
from 2014 to 2020, is foreseen to grow most rapidly.

The consumer business vertical registered
income worth about USD 624 billion in 2013.

Regions - Outlook

The key regional segments in the Internet of
Everything (IoE) market are Asia Pacific, Latin America, Middle East &
Africa, Japan, North America, Eastern Europe and Western Europe. North America
assumed leadership in 2013. It accounted for more than 33% of the total
revenue. The region is likely to grow strongly at a CAGR of 14% by 2020.

It was followed by Western Europe. Western
Europe and Asia Pacific together, contributed approximately 20% of the
worldwide Internet of Everything (IoE) market revenue in 2013. Asia Pacific is
anticipated to grow the fastest. It would expand at a CAGR of more than 18.5%
from 2014 to 2020.

Components - Overview

Based on components, the Internet of
Everything (IoE) market is categorized into infrastructure enablement spending;
intelligent systems; and services enablement spending. Intelligent systems were
worth USD 1,500 billion in 2013.

They are expected to grow at a CAGR of 15%
from 2014 to 2020. Infrastructure enablement spending is likely to be the
fastest growing component by 2020. It is estimated to register revenue worth
around USD 1,160 billion in 2020.

Competitive Profile

Some of the participants of the Internet of
Everything (IoE) market are Ericsson, Cisco Systems Inc., Oracle Inc., Vodafone
Group Plc., Google Inc., and Hewlett-Packard Company. The others are IBM
Corporation; Apple Inc.; Samsung Electronics Co. Ltd.; and Accenture Inc; among
others.

These players focus on technological
advancements to grow and stay competitive. Consolidation through mergers,
acquisitions and strategic alliances are common among them.